Tesla (NASDAQ:TSLA) +0.9% after-hours after Nomura initiates coverage of the stock with a Buy rating and a Street-high $500 price target, vs. a consensus target of slightly more than $300.

Analyst Romit Shah forecasts "unprecedented" revenue gains for TSLA - $8B in 2016 to $58B in 2021 - and believes the company has "an insurmountable lead in vehicle range per dollar."

TSLA also benefits from a largely inferior competitive field which should drive growth at current levels and help it work through Model 3 production problems, Shah says, adding that he expects upwards of mid-to-high 20% gross margins by 2020.